Overnight reverse repos are for managing liquidity, says PBoC
Deputy governor reiterates that seven-day facility still provides benchmark lending rate
The People’s Bank of China’s overnight reverse repurchase operations are designed to target liquidity management rather than interest rate levels, the bank’s deputy governor has said.
The PBoC said in mid-June that it would begin to use overnight reverse repo operations, which had been introduced in 2024 but which the bank up till then had never actually used. Speaking at a press conference today (July 15), the bank’s deputy governor Zou Lan said its first two sets of overnight reverse repo
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